China’s Sinopec said its Qingdao LNG terminal for the first time traded volumes of the chilled fuel on the Chongqing Petroleum and Gas Exchange (CHPGX) at the end of September.
The terminal sold 3,340 tons of LNG on September 28, the company said in a statement noting the sale marks its entry in the North China market.
Sinopec added that earlier this year China’s National Development and Reform Commission urged the companies to conduct transactions through platforms such as Shanghai and Chongqing Oil and Gas trading centers in order to establish the market mechanisms and form market transaction prices.
The company added that the next step is to initialize trade of Tianjin LNG volumes on the Shanghai Oil and Gas Trading Center.
The goal is to gather experience by trading smaller volumes during the non-heating period before fully engaging in trade after the heating period starts, Sinopec said.